Xin Zhao has obtained a loan to finance a new car at an interest rate of 7%

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Question:

Xin Zhao has obtained a loan to finance a new car at an interest rate of 7% per annum. The

annuity consists of six cash flows of $5000 payable annually. Calculate the value of the annuity

today if the first cash flow is to be paid:

a. immediately [5 marks]

b. in one year's time. [5 marks]

c. in four years' time [5 marks]

Posted Date: May 19, 2024 02:13 PM

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Xin Zhao has obtained a loan to finance a new car at an interest rate of 7%

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